Published by Wikileaks & Bivol.bg
date: 7/25/2005 16:02 refid: 05SOFIA1329 origin: Embassy Sofia classification: UNCLASSIFIED//FOR OFFICIAL USE ONLY destination: 05SOFIA1036|05SOFIA1134|05SOFIA1325 header: This record is a partial extract of the original cable. The full text of the original cable is not available. UNCLAS SOFIA 001329 SIPDIS SENSITIVE E.O. 12958: N/A TAGS: PGOV, BU SUBJECT: BULGARIAN SOCIALISTS PRESENT MINORITY GOVERNMENT, BUT WITH SOME REASSURING FACES Ref: (A) SOFIA 1036, (B) SOFIA 1134, (C) SOFIA 1325 1. (SBU) SUMMARY: Socialist PM-designate Sergei Stanishev presented his cabinet choices July 24, drawing candidates from his own party as well as his coalition partner, the mainly ethnic-Turkish Movement for Rights and Freedoms, and outside technocrats. The proposed list seeks to garner public support and reassure the international community regarding the new government's foreign and macroeconomic policies. Parliament will vote on the proposed cabinet July 26. The Socialists say they have secured the needed votes, but there is a degree of uncertainty, given that the BSP and MRF have only 116 MPs in the 240-seat parliament. Although the BSP/MRF outline of government priorities calls for "immediate withdrawal from Iraq," high-level BSP sources reaffirmed that the process would likely drag on until the end of the year. END SUMMARY 2. (U) Stanishev presented to President Georgi Purvanov July 24 the line-up of the new government, comprising 13 ministers from the BSP and five from the MRF. Along with prominent BSP figures, such as the party's two influential deputy leaders Roumen Petkov and Roumen Ovcharov, Stanishev has brought in respected figures from outside the party. Western-educated financier Ivailo Kalfin, who advised Purvanov on economic matters, was named one of two deputy Prime Ministers as well as Minister of Foreign and European Integration Affairs. In what is the biggest surprise on Stanishev's list, Plamen Oresharski, who served as deputy finance minister in the 1997-2001 center-right administration of former PM Ivan Kostov, is proposed for the finance portfolio. 3. (SBU) Despite the Socialist's assurances that they have secured the needed parliamentary support, Tuesday's parliamentary vote remains a risky affair, given that the BSP and the MRF together are five votes short of a majority in the 240-seat parliament. A close aide to Stanishev told us privately the Socialists have reached agreement with enough individual MPs from other parties to secure approval of the government. If the Socialists fail, Purvanov will ask the second biggest party, the NMSS, to form a government. If the second attempt fails, Bulgaria may face new elections. 4. (SBU) COMMENT: The collapse of the coalition talks with Simeon's party forced the Socialists to move to "Plan B" for forming a minority government with only the MRF. Aware of the domestic and international apprehensions with regard to a potentially-unstable minority government, the Socialists turned to respected figures outside their party for key government posts. The nominations of Kalfin for the foreign affairs portfolio and Oresharski for the finance portfolio send mostly reassuring signals for stability with regard to foreign and fiscal/monetary policy. President Purvanov is also expected to play a moderating role in the foreign policy area. Despite campaign promises to the contrary, BSP Deputy Chairman Roumen Petkov assured us that withdrawal from Iraq will not take place before the end of the year. The key test for the government, if approved, will be Stanishev's ability to garner parliamentary support to press ahead with EU-linked reforms needed to secure Sofia's 2007 entry. END COMMENT KEY FACES: 5. (SBU) SERGEI STANISHEV, PRIME MINISTER: Stanishev is a 39-year old Moscow-educated historian, whose only non- political experience was as a freelance journalist. He is affable and media-friendly, and enjoys a largely positive public image, but is seen by some as lacking authority and experience. As leader of the BSP parliamentary group in the previous parliament, he was a strong supporter of membership in the EU and NATO. 6. (U) IVAILO KALFIN, DEPUTY PRIME MINISTER AND MINISTER OF FOREIGN AND EU-INTEGRATION AFFAIRS: Kalfin was President Purvanov's economic advisor, which may indicate that Purvanov will have a significant say on foreign policy matters under the new government. He is a Western-educated economist and financial consultant, and is fluent in English, Russian, French, and Spanish. 7. (U) ANGEL NAIDENOV, MINISTER OF DEFENSE: A Naval engineer and former mayor and regional Governor, Naidenov is considered a moderate reformer close to BSP leader Stanishev. He was BSP spokesman and a member of the Foreign Affairs, Defense and Security Committee in the previous parliament. 8. (U) PLAMEN ORESHARSKI, FINANCE MINISTER: Oresharski is an economist and financier who currently serves as Vice Dean of Sofia's Economic University. He was previously a deputy finance minister under a center-right government in 1997- 2001. 9. (SBU) RUMEN OVCHAROV, MINISTER OF ENERGY AND ECONOMY: As deputy Chairman, Ovcharov is among the most influential figures within the BSP. He is a Russian-trained nuclear engineer who served as Energy Minister in the failed Socialist government of Zhan Videnov in 1996-1997. 10. (SBU) ROUMEN PETKOV, MINISTER OF INTERIOR: Petkov is the other influential Socialist deputy leader, responsible for BSP organizational matters and party funding. His four- year term as mayor of Pleven was marred by allegations of corruption. He is a pragmatist who maintains good relations with other parties, particularly the MRF. 11. (U) Additional biographic data will be provided when the government is approved by parliament.
